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Dealer Group CFO Admits to Defrauding Ford Credit of $50M

Nearly a year after Ford Motor Credit sued Reagor-Dykes Auto Group for hiding one of the largest floorplan financing frauds in history, the captive is finally receiving closure. The Texas-based dealership group’s Chief Financial Officer Shane Smith has pleaded guilty to defrauding the captive, shelling out $50 million in restitution to Ford Credit and other […]
  • Nicole Casperson
  • June 20, 2019
  • Risk

Court Favors Ford Credit in Floorplan Dispute, Dealer Shells Out $58M

Reagor-Dykes Auto Group Co-Owner Rick Dykes has agreed to pay Ford Motor Credit Co. $58.7 million, about half of what the captive claimed it was owed. Bart Reagor, the former chief executive and the other co-owner, is not mentioned in the April 2 consent order; a civil suit against him is still pending. Ford Credit […]

Capital One Auto Finance Sues Missouri Dealership for Fraud

Capital One Auto Finance filed a lawsuit against Cape Girardeau, Mo.-based Coad Toyota claiming $619,690 in damages for allegedly misrepresenting facts about vehicles sold and falsifying down payments and sales tax in 34 instances, according to court documents filed Dec. 21, 2018. In one example cited in the lawsuit, the dealership allegedly supplied information to […]

15 Credit Unions Targeted in Fraudulent Auto Loan Scheme

More than a dozen credit unions across the country were hit with a fake car loan scheme perpetrated by three conspirators found guilty last week. The fraudulent acts were first revealed in March when the suspects were accused of obtaining $1 million in auto loans, according to court documents filed by federal prosecutors in U.S. […]

Nissan Dealerships Slapped With $40M Fine for Loan Defaults

Nissan Motor Acceptance Corp. has won its legal battle with a group of Manhattan-based franchise dealerships. The captive is entitled to $40.1 million after the dealerships and their guarantors defaulted on loan obligations, according to court documents. The litigation was sparked by the dealerships initially suing NMAC for a “breach of contract,” the filing notes. […]

14% of Subprime Loans at Franchise Dealers Have Price Inflation

An estimated 5% of franchise dealerships up-charge vehicles sold to subprime consumers more than $1,000 on average above the online advertised price, making it more likely that borrowers will default on their loans, Josh Wortman, an analyst with General Forensics, told AFN. Since 2017, Wortman’s data also shows that 26% of independent dealerships inflate prices […]
  • Nicole Casperson
  • September 20, 2018
  • Risk